REPLACEMENT OF MULTI ACCESS RADIO RELAY (MARR) VPTs-REPLACED AFTER 30.06.03

A. General Conditions

The scope of this Agreement is to install new VPTs after 30.06.03 in replacement of MARR VPTs and operate and maintain all such new VPTs by the USP in the service area for which agreement has been entered into. M/s BSNL is the lone USP under this agreement signed in September 2003.

The effective date of agreement is 1st July 2003.

The validity of Agreement is 9 years from the effective date i.e. 01.07.03.

The subsidy under the Agreement is payable from the date the new VPT is provided in replacement of MARR VPT and made functional, up to a maximum period of 7 yrs from the date of replacement of MARR VPT.

The Universal Service Provider may change the location of VPTs to provide better access to the public within the same village. No subsidy support for relocating the VPTs will be made from USOF on the expenditure incurred on relocation.

The USP shall be solely responsible for provision and operation of necessary equipment and systems, treatment of subscriber complaints, collection of call charges and issue of receipt thereof, attending to claims and damages arising out of operations.

The USP shall work within the framework of the terms and conditions of basic service license.

B. Submission of claims by IP and settlement there to

The SSA-wise and technology-wise representative rates at which subsidy are disbursable are given in Part IV 'Financial Conditions' of the Agreement.
The agreement provides for review of representative rate in the third year of the Agreement taking into account, inter-alia, the increase in the revenue on account of provision of STD facility. There have been no changes in the representative rates after review, which have come into effect from the fourth year of the Agreement.

For the purpose of the agreement, and disbursement of funds from USOF, first year ended on 31st March following the date of commencement of Agreement.
Subsidy claims are to be submitted by USP in four quarterly installments in the prescribed form and the Annexure/Attachments there to within 30 days from the close of the quarter.

The claims should be duly certified with an Affidavit by a representative of USP duly authorized by a resolution of the Board of Directors.
The quarterly statements of subsidy claims shall be required to be audited by the Auditors of USP and the report of the Auditors to be filed with the Administrator within seven days of the signing of the Audit Report but not later than 30th September of the following year.

The subsidy from the USOF shall be disbursed in four quarterly installments during each financial year. Each installment shall be disbursed quarterly in arrears.

Subsidy for a quarter shall be disbursed after making adjustments, if any, for the payments made in the previous quarter.
Final adjustments, if any, in respect of excess or shortage in the subsidy disbursed shall be made in the following year based on the quarterly statements duly certified by the Auditors of the USP.

In case total amount disbursed for a financial year based on quarterly self assessment claims of the USP results in excess payment by more than 10% of the actual subsidy due to him, the entire amount of excess payment shall be recovered along with an interest at the prime lending rate of State Bank of India prevalent on the day the respective disbursement was made.

C. Other Conditions

In cases of faults for more than 7 days in a quarter, the subsidy shall be deducted proportionately for the total number of days VPT remained faulty during the quarter. In cases, however, where the VPT remains faulty for 45 days or more in a quarter, no subsidy for the entire quarter shall be allowed.

With effect from the quarter ending 30.09.2004, VPTs that remain disconnected on account of non-payment and VPTs that register no incremental meter reading during the entire quarter shall not qualify for any subsidy support for that quarter (vide letter no. 30-101/2002-USF dt 14.09.04).

Claims from QE December 2007 onwards, should contain a list of NIMR/Closed/DNP VPTs.

VPTs subsidy claim from QE June 2008 onwards should be certified by concerned GM/DGM TR to the effect that information furnished in the claim tallies with billing record ( vide USO letter no. 1-1/2008-USOF dated 6th May 2008).

D.Performance Bank Guarantee (PBG)

BSNL is the only USP under this Agreement, and as such no PBG is required so long as it is a 100% Govt. owned company.

E. Roll Out

The Roll out period for replacement of MARR VPTs in the service area for which Agreement is signed is 5 years and 9 months from the effective date of Agreement i.e. by 31.03.09 (Roll out conditions were modified vide USO Tech letter no. 30-107/2007-USF(Vol-VI) dt. 21.11.08, circulated vide USO Finance.